Steel Stocks: US Steel Reports Wider Loss (X, AKS, CENX, MT)
United States Steel Corporation (NYSE:X) shares slipped 1.75% as the company reported wider first quarter loss largely due to a $399 million charge for the sale of its Serbian manufacturing plant.
The company reported a net loss of $219 million, or $1.52 per share, compared to a year ago loss of $86 million, or 60 cents a share. On an adjusted basis, the company would have earned 67 cents a share, well above analysts’ estimates of a profit of 44 cents.
Revenue during the quarter grew 6.30% year-over-year to $5.17 billion, again topping analysts’ estimates of $4.94 billion.
Steel shipments during the quarter fell by 3% in the quarter because of weakness in Europe, where mounting government debts have stalled economic growth in many nations.
AK Steel Holding Corporation (NYSE:AKS) shares also fell 1.63% to $7.22 after the company reversed a year ago profit on lower volumes.
The company posted a loss of $11.8 million, or 11 cents a share in the first quarter, compared to a year ago profit of $8.7 million, or 8 cents a share, lower end of its own projections of a loss of 11-15 cents a share.
Revenue slid 4.6% year-over-year to $1.51 billion, just above the analysts’ estimates of $1.5 billion.
Gross margin narrowed to 6.6% from 7.1%.Shipments fell 6.8% from a year earlier to 1.33 million tons. The average selling price per ton rose 2.6% to $1,138 from the prior year.
ArcelorMittal (ADR)(NYSE:MT) shares rose 2.52% to $16.69.
Century Aluminum Co (NASDAQ:CENX) was up 0.25% to $8.05 ahead of its earnings. The company is projected to report a loss of 22 cents a share on revenue of $317.14 million, compared to a year ago profit of 24 cents a share on revenue of $326.43 million.